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What is ROAS?

Definition and meaning of ROAS:

ruh·tuhn on ad spend

Return on advertising spend (ROAS) is a metric for measuring the effectiveness of an advertising campaign. It’s the ratio of revenue generated to money spent on advertising.

For example, if you spend $1,000 on ads and generate $10,000 in sales. As a result, your ROAS would be 10:1, meaning you’re making $10 for each $1 you spend on advertising.

By tracking ROAS, you can identify which campaigns are doing better or worse and adjust your ad spending. It helps you make the right decisions, maximize results, and ensure that your ad budget is well spent.


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